3 Stocks To Keep An Eye On In 2019

3 stocks poised to move higher in 2019:

Now that the market is back in trend mode following a correction we can ask the question: which stocks are poised to move significantly higher in 2019?When looking for stocks that have room to run, some of the best bets are those that are moving out from a recent base after setting a new all-time high for the first time in a few years.

It isn’t always the first thrust to a new all-time high that leads to big gains, as this sort of breakout is fairly obvious especially when a stock is extended from its last base.Rather than buying the initial surge to a new high, waiting for some sort of base to form that is 5 to 20 weeks in length and within 20-35% of the recent high is ideal (unless the stock forms such a base just below the all-time high).A breakout from this base is a strong buy signal as can often lead to a significant rally when market conditions are healthy.It also helps to make sure the stock is in a top performing industry group.

Codexis (CDXS) broke out to a new all-time high in 2018, clearing the prior high at $15 from 2010. Since clearing the high the past few breakouts attempts have failed to lead to a strong uptrend, but the price remains in a rising channel, which is bullish.

$CDXS

The weekly chart below shows the strong pick up in volume on the move through the 10-week MA. Look for CDXS to form a tight trading range during the next few weeks as a potential buy entry. A breakout to new all-time highs from the current base on volume would be a clear buy signal.

$CDXS

Cyberark Software (CYBR) moved to a new all-time high in 2018, clearing the prior high at $76 from 2015. The stall at $80 led to a three month long base that corrected 23% off the recent high. CYBR has already broken out from its base on volume but should be buyable on any test of the 10-week moving average on a weekly chart during the next few months.

$CYBR

Splunk (SPLK) moved to a new all-time high in early 2018, clearing the previous high from 2014 but failing to follow through. The last breakout attempt in September failed along with the market, which led to a 22 week base that corrected 36% off the high. SPLK broke out from this base in early February but volume failed to impress. SPLK should be monitored for an entry after a few weeks of tight sideways action or on a test of the 50-day MA. Volume should come in on the next breakout if the stock is ready to launch higher.

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Disclaimer: Past results are not necessarily indicative of future results. There is a high degree of risk for substantial losses in trading securities. All data and material on this website and/or ...

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